Hybrid Cars Market (Type: Series, Parallel, Plug-in, and Series-Parallel; Energy Source: ICE Hybrid, Fuel Cell Hybrid, Solar Hybrid, and Natural Gas Hybrid; Degree of Hybridization: Full Hybrid, Micro-Hybrid, and Mild Hybrid; and Vehicle Type: Passenger Vehicle and Light Commercial Vehicle) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2022-2031

The global Hybrid Cars market gathered revenue around USD 247.30 billion in 2021 and market is set to grow USD 2.2 Trn by the end of 2031 and is estimated to expand at a modest CAGR of 21.94% during the prediction period 2022 to 2031.

 Increasing shift in demand from conventional gasoline powered engine vehicles to environment-friendly engine vehicles is a key factor fueling the growth of the hybrid cars market. Consistent effort of automobile manufacturers for improved designs until commercialization is promising for the growth of hybrid cars market.

Increasing consumer awareness for fuel-efficient vehicles and government regulations to curb vehicle emissions is leading to the rising demand for electric and hybrid vehicles. Hybrid vehicles receive power either from electric motor engine, natural gas engine, or internal combustion (IC) engine, with IC engines mostly used to power battery of electric vehicles and hybrid vehicles for their low emissions.

Several governments the world over are playing a key role to increase awareness about electric and hybrid vehicles to reduce the use of conventional fuel-based engine vehicles in an effort to conserve the environment. Governments are providing several benefits and subsidies to increase the production capacity of electric and hybrid vehicles, and tax incentives to users for purchase of these vehicles. For instance, the U.S. Government offers up to US$ 7,500 federal income tax credits for all electric and plug-in hybrid electric vehicles.

 Report Scope of the Hybrid Cars Market

Data-driven Strategies Automakers Revive Market Economy amid COVID-19 Crisis

The recent COVID-19 pandemic has showed adverse impact on the overall growth of the global hybrid cars market. The companies engaged in this market are dealing with many issues such as sudden drop in sales, stoppage in production activities, and thereby lowered revenues. Nevertheless, market players are strategizing their moves to regain their production activities by taking all necessary precautions stated by regional government authorities. As a result, the market is expected to recover from the recent pandemic and show promising growth in the forthcoming years. Automakers are in the midst of rapid shift in supply chain planning, operations, and inventory management to address the impact of the pandemic.

Hybrid Cars Market: Overview

Hybrid cars uses several power sources including electric motor engine, fuel-based engine, and natural gas engine. In hybrid cars, the battery is charged with the help of the internal combustion engine and regenerative braking system in the car. Moreover, hybrid cars provides more power, minimum emission and better fuel efficiency.

Increasing need of fuel efficiency and better performance of the vehicles leads to growth of the hybrid cars market. The hybrid cars uses environment friendly engines which are compact in size, apart from this, hybrid cars also has improved aero dynamics, and less car weight as compared to IC engine cars, which leads to enhance the fuel efficiency of the vehicles. Moreover, with reduced engine size and car weight, the mileage of hybrid cars increases, which also improves the demand for the cars and further propel the growth of the market.

Drivers of Hybrid Cars Market

Increasing demand and production capacity of hybrid vehicles across developed and developing nations led by the rising emission regulations and spike in the fuel prices, which further contributes in the growth of the global hybrid cars market. Moreover, in most of the developed nations, the car manufacturing players are focusing to strengthen their hybrid car production capacity by shifting their manufacturing units to local production and using most of local components for their car assembly, which contributes in the growth of the regional hybrid cars market. In addition, local manufacturing also reduces shipping cost and thereby, subsidize in the market growth.

Governments across the globe are focusing to make awareness about the electric and hybrid vehicles, in order to reduce the use fuel based engine vehicles and decrease global pollution rate. Moreover, governments are also providing several benefits and incentives to vehicle manufacturers and users to enhance the production capacity and utilization of electric and hybrid vehicles. Government also implements several vehicle emission laws and regulations that enables the manufacturers to opt for hybrid vehicles production and hence, such factors further propels hybrid car market growth.

Increasing population rate across the developing nations impels the use of vehicles and fuels the chances of more pollution in the region. Therefore, to avoid such problems, governments is taking several steps to create an awareness among to consumers to opt for low or zero emission vehicles. Moreover, rising fuel prices augments the adoption rate of electric and hybrid vehicle that further boost the growth of hybrid cars market.

Challenges for Hybrid Cars Market

High cost associated with the production of hybrid cars and its related products is considered as one of the major challenge faced by the hybrid car manufacturers, which further restrains in the growth of the market. Apart from this, rising demand and adoption of battery electric vehicles (BEVs) across the globe due to its high performance and zero emission feature, impose a challenge for the development of hybrid cars market.

Due to outburst of the COVID-19 pandemic, the automotive and other industries are hampered on large extend, as all the vehicle designing and manufacturing processes where stopped. Lockdown was imposed, which further hampered the demand for electric, hybrid and IC engine vehicles. Moreover, due to disruption of global supply chains, there was shortage of raw material supply, which is required for car manufacturing, which also hampered the market growth.

Hybrid Cars Market Players

The global hybrid cars market has been segmented based on type, energy source, degree of hybridization, vehicle type, and region

Based on type, the series-parallel hybrid car segment dominated the global hybrid cars market, in terms of revenue, in 2020. The series-parallel hybrid cars has an ability of power-split, which allows power paths right from IC engine vehicle to the wheels, whereas, this power can be either electric or mechanical. In addition, the plug-in hybrid cars are expected to have fastest growth in the global hybrid cars market due to rising demand of consumers for battery-operated vehicles.

Based on energy source, the ICE hybrid car segment dominated the global hybrid cars market, in terms of revenue, in 2020. The ICE vehicles has highest adoption rate across the globe, which enhances the market growth. Moreover, IC engine helps the hybrid cars to power the electric motors and act as a generator to recharge the vehicle batteries, therefore, it has highest demand in the market.

Hybrid Cars Market: Regional Analysis

Based on region, the global hybrid cars market has been segmented into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America

Asia Pacific region has dominated the global hybrid cars market in terms of revenue for 2020, as this region has highest adoption of ICE and hybrid vehicles and there is rising awareness regarding environment friendly or zero emission vehicle. Moreover, China and India has highest population across the globe, which increases the adoption rate of the ICE, hybrid and electric vehicles, which is expected to witness highest growth for hybrid cars market during forecast period. In addition, governments in Asia Pacific region are providing incentive for adoption of low or zero emission vehicles, which also contributes in the hybrid cars market growth. Further, the North America and Europe hybrid car market has attained maturity due to rising use of electric vehicles, hence it registers moderate growth for hybrid cars market.

Some of the prominent players in the Hybrid Cars Market include:

• Volkswagen AG
• Toyota Motor Corp.
• Nissan Motor Co. Ltd.
• Honda Motor Co. Ltd.
• Hyundai Motor Co.
• Continental AG
• BorgWarner Inc.
• Ford Motor Company
• Volvo Group
• Daimler AG
• Allison Transmission
• ZF Friedrichshafen AG
• Others

Segments Covered in the Report

This research report offers market revenue, sales volume, production assessment and prognoses by classifying it on the basis of various aspects. Further, this research study investigates market size, production, consumption and its development trends at global, regional, and country level for the period of 2017 to 2030 and covers subsequent region in its scope:

Hybrid Cars Market, by Type

• Series
• Parallel
• Plug-in
• Series-Parallel

Hybrid Cars Market, by Energy Source

• ICE Hybrid
• Fuel Cell Hybrid
• Solar Hybrid
• Natural Gas Hybrid

Hybrid Cars Market, by Degree of Hybridization

• Full Hybrid
• Micro-Hybrid
• Mild Hybrid

Hybrid Cars Market, by Vehicle Type

• Passenger Vehicle
• Hatchback
• Sedan
• Utility Vehicles
• Light Commercial Vehicle

By Geography

North America

• U.S.
• Canada

Europe

• Germany
• France
• United Kingdom
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Southeast Asia
• Rest of Asia Pacific

Latin America

• Brazil
• Rest of Latin America

Middle East & Africa (MEA)

• GCC
• North Africa
• South Africa
• Rest of Middle East & Africa

Key Points Covered in Hybrid Cars Market Study:

• Growth of Hybrid Cars in 2022
• Market Estimates and Forecasts (2017-2031)
•  Brand Share and Market Share Analysis
•  Key Drivers and Restraints Shaping Market Growth
•  Segment-wise, Country-wise, and Region-wise Analysis
•  Competition Mapping and Benchmarking
•  Recommendation on Key Winning Strategies
•  COVID-19 Impact on Demand for Hybrid Cars and How to Navigate
•  Key Product Innovations and Regulatory Climate
•  Hybrid Cars Consumption Analysis
•  Hybrid Cars Production Analysis
•  Hybrid Cars and Management